Terminated employee

[Guest msearle]

If an employee is terminated prior to the end of a plan year, and has funds left in their flexible spending account, can they continue to use it through the remainder of the year even though they're not an employee any longer?

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[Lisa Hand]

Joe's answer to the terminating employee should also answer your question.

[Guest msearle]

Thanks for the tip. What if the business is not required to comply with COBRA due to its size? I assume (from Joe's response) that if the employee is terminated prior to full use of contributions, and then has a need for them, and cannot invoke COBRA, he/she has lost the contribution. Correct?

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